http://rudeawakening.agorafinancial.com/2008/11/18/buy-lowif-you-dare/ Hot Coffee In the Face of Wall Street Thu, 05 Nov 2009 06:41:47 -0600 http://wordpress.org/?v=2.8.4 hourly 1 http://rudeawakening.agorafinancial.com/2008/11/18/buy-lowif-you-dare/comment-page-1/#comment-617 RiskAverseAlert Tue, 18 Nov 2008 21:41:23 +0000 http://www.agorafinancial.com/afrude/?p=418#comment-617 The idea there is a lemming effect underlying the typical investor's psychology guiding buying and selling decisions is most curious. Without this dynamic, it seems, a company's earnings might be slated to rise 'til kingdom come, and yet if the driving sentiment only sees reasons to sell the company's stock, positive earnings prospects would remain relatively meaningless. This is why I prefer analytical methods not so much keyed on company prospects, but rather on how these prospects are being perceived and acted upon by investors... The idea there is a lemming effect underlying the typical investor’s psychology guiding buying and selling decisions is most curious. Without this dynamic, it seems, a company’s earnings might be slated to rise ’til kingdom come, and yet if the driving sentiment only sees reasons to sell the company’s stock, positive earnings prospects would remain relatively meaningless. This is why I prefer analytical methods not so much keyed on company prospects, but rather on how these prospects are being perceived and acted upon by investors…

]]>